Thailand's automotive market in 2025 showed interesting activity amid a fragile economy and still weak consumer purchasing power. Monthly sales figures throughout the year indicated mixed trends of growth and contraction. Notably, in the first quarter, total vehicle sales fell about 6.5% compared to the same period last year, though some months such as September and October saw sales increase nearly 24–25%, signaling market recovery toward year-end.
Major automobile manufacturers remain key market drivers. Toyota, the dominant player in Thailand, clearly retained market leadership with a share of nearly 38–39% in several months, posting overall sales growth compared to previous years, despite some sales fluctuations due to economic conditions and product line variations.
In the first half of 2025, total vehicle sales were approximately 302,694 units, a slight decline of 1.7% compared to 2024. However, the xEV segment (electric and hybrid vehicles) showed remarkable growth, accounting for nearly 44% of total sales, with electric vehicles (EVs) growing over 50% in this period.
For the full year, the nationwide vehicle market is expected to reach about 600,000 units, marking a recovery from 2024’s sharp decline of over 26%, which was caused by financial constraints and weak purchasing power.
Competition remains intense this year, especially among passenger cars and commercial vehicles, where demand varies according to consumer behavior.
Pickup trucks continue to be a crucial product in Thailand’s automotive industry for both personal and commercial use. Although sales have not always been outstanding, they maintain a significant market share. The government has sought to stimulate demand through loan guarantee measures to ease credit access, particularly during periods of high household debt and tighter lending from financial institutions.
The electric vehicle (EV) and hybrid (xEV) markets are among the stars of this year’s automotive sector. EVs have grown steadily, with registrations nearly matching total sales for all of 2024, supported strongly by government policies such as the EV3.0 program, which significantly expanded EV sales.
EV growth is driven by factors including more affordable prices for certain consumer segments, increased inclusion of HEV/BEV models in sales figures, and investments from Chinese manufacturers like BYD and Great Wall Motors (GWM), which are gaining market share, especially with models that received large pre-orders at major auto shows such as the Bangkok Motor Show and Motor Expo.
While Japanese brands like Toyota, Honda, and Isuzu still lead overall market share, Chinese brands such as BYD, MG, GWM, and Changan are building strong momentum, particularly in EVs and small, affordable vehicles, intensifying competition in pricing and innovation.
Key factors influencing the growth of Thailand’s automotive market this year include:
1) Economy and credit accessibility
Thai consumers’ purchasing power remains weak, especially in car loan access, limited by high household debt and financial institutions’ stricter lending standards. This has caused new vehicle sales to fall below expectations at times, prompting the government to introduce loan guarantees and sales stimulation measures, such as for pickup trucks.
2) EV support policies and foreign investment
Thailand’s revised EV support policies have encouraged manufacturers to include export and domestic production volumes in their counts, boosting investment confidence. Major producers like BYD and Mazda have invested billions of baht to manufacture EVs locally, targeting ASEAN markets and exports.
3) Consumer trends toward technology and safety
Consumers increasingly value advanced automotive technologies, including driver assistance systems, safety features, and energy-efficient driving options. This has made hybrid and EV models more popular compared to traditional internal combustion vehicles.
Looking ahead to 2026, Thailand’s vehicle market is expected to continue a gradual recovery.
The 2026 market should see positive growth, with total sales likely to rise from the recovering base in 2025. Although the pace will be gradual due to macroeconomic uncertainties, new product launches and momentum from EVs will help push sales higher throughout the year.
The transition to electric vehicles will intensify in 2026.
EV market growth is projected to continue in 2026, with the EV share of total sales increasing significantly from 2025 levels. This is supported by ongoing incentives, expanded investment from foreign and Chinese manufacturers planning new models for Thailand, and infrastructure development like charging stations to facilitate wider EV adoption.
In 2026, competition in Thailand’s automotive market will extend beyond price wars to include product quality, technology, safety systems, and after-sales service.
Both Thai and foreign operators must differentiate their products to attract modern consumers, as market structure, consumer behavior, and competitive dynamics have changed significantly as follows:
1) High competition with similar products
The Thai automotive market now features many players, including long-established Japanese and European brands, alongside emerging Chinese manufacturers, especially in the EV segment with continuous new model launches. Many vehicles offer comparable performance, pricing, and basic features. Without clear differentiation, consumers often choose based solely on price, leading to fierce price competition and reduced operator profits.
Creating differentiation helps brands avoid price wars and maintain long-term profitability.
2) New consumer behavior shifting from "buying out of necessity" to "buying for value"
New-generation consumers no longer view cars merely as transportation but as lifestyle and image statements, emphasizing smart technology and connectivity (Connected Car), advanced driver assistance and safety, energy efficiency and environmental friendliness, and design reflecting personal identity.
Brands that can communicate unique "value" and "user experience" have a better chance to win consumers’ loyalty than those focusing solely on selling products.
3) Consumers have more information and easy comparisons
The digital era enables consumers to access detailed information, reviews, and vehicle comparisons before purchasing, including price, performance, long-term costs, and after-sales service.
Without clear product differences, consumers perceive vehicles as "the same" and choose the brand offering the best perceived value.
Differentiation thus serves as a tool for brand recognition and reduces the risk of being replaced.
4) Competition extends beyond the vehicle to the "ecosystem"
Modern automotive markets compete across entire systems including after-sales service and warranties, app and software updates, EV charging networks, and financial and credit packages.
Operators delivering differentiated, comprehensive customer experiences gain advantages over competitors, even at slightly higher prices.
5) Building long-term brand loyalty
Clear differentiation helps consumers remember and bond with a brand, leading to repeat purchases, word-of-mouth promotion, and confidence in new brand products.
In markets where consumers can easily switch brands, brand loyalty is a critical asset built through differentiation rather than price cuts alone.
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